The return of Wall Street investors to the the movie industry will almost certainly end badly, but hey, maybe we’ll get a few good satirical business movies out of it:
Film financeInvestment firms and hedge funds are
bullish on Hollywood again, sinking millions into production deals with
major studios and independents.
By Stephen Galloway
Not long ago, Hollywood was trumpeting the new breed of money men as
saviors of the film business, with high-net-worth individuals such as
Mark Cuban and Bob Yari infusing much-needed funds into productions
around town. Now, Wall Street is following in their footsteps. These
days, it seems that investment firms and hedge funds have decided that
movies might be worthy gambles after all.
“The studio business historically returns around 12%
or 13% a year, and the feeling is that, with the explosion of home
video and the potential of new technologies, this is probably just the
base,” producer Michael London says.